How Paytm QR Codes revolutionised digital payments in India

The first Indian company to integrate payments into QR and take it to the level of neighborhood stores Paytm had hired 10,000 agents during demonetisation to expand its merchant network and strengthen its team to take more users on board.

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Published : Jul 29, 2019, 7:34 PM IST

New Delhi: Quick response (QR) codes have become a common payment option for Indian smartphone users at restaurants, grocery shops and the like, and it was Paytm which pioneered the method and leads the field, which has now attracted the interest of tech majors like Google and Facebook-Whatsapp.

The first Indian company to integrate payments into QR and take it to the level of neighborhood stores Paytm had hired 10,000 agents during demonetisation to expand its merchant network and strengthen its team to take more users on board, so that "Paytm Karo" soon became a slogan for digital payments.

Its success in the digital payments space from various day to day payment use-cases to Paytm QR - has now attracted American giants. Media reports said that Google Pay and Phonepe are increasingly looking at offline payments and trying to carve out a share in the Paytm-dominated market.

Offline payments are increasingly in focus with the government proposing zero charges on all forms of digital payments to encourage their use.

Paytm says it has reported that it registered more than 250 million monthly transactions through Paytm QR in 2019-20's first quarter - more than the combined number of other QR-based payments on different platforms - making it the unquestioned leader in the space.

Paytm's Senior Vice President Deepak Abbot said: "Paytm was the first company to identify the need for a no-cost payment method, which would be convenient & secured for both merchants and customers. We launched our innovative Paytm QR in 2015 that customers could simply scan with their smartphones & pay to the merchant.

Paytm QR, he said, "revolutionized the entire digital payments industry and millions of people adopted it across the country, right from the local Kirana stores, auto-rickshaws and fast food joints to top-end hotels & restaurants".

"We feel pride in seeing that its popularity has inspired many other digital payments companies, including the UPI to adopt a QR-based payment method," Abbot added.

He noted that Paytm "continues to be the digital payments leader in India", seeing a three-fold growth in the last one year in both online and offline payments.

"With more than 12 million merchants on board, we register over 250 million monthly offline transactions."

Offline payments are increasingly in focus with the government proposing zero charges on all forms of digital payments to encourage their use.

"We feel pride in seeing that its popularity has inspired many other digital payments companies, including the UPI to adopt a QR-based payment method," Abbot added.

He noted that Paytm "continues to be the digital payments leader in India", seeing a three-fold growth in the last one year in both online and offline payments.

"With more than 12 million merchants on board, we register over 250 million monthly offline transactions."

ZCZC
PRI GEN NAT
.NEWDEL PAR15
RS-DEPOSITBILL
RS members support bill to regulate unregulated deposits
schemes
New Delhi, July 29 (PTI) Cutting across party lines,
members in the Rajya Sabha on Monday supported a bill that
seeks to regulate unregulated deposit schemes in the country
and protect the money of poor depositors.
CPI-M leader Elamaram Karim, however, moved a resolution
opposing the ordinance route taken by the government to bring
this bill just before Lok Sabha polls.
Asserting that he does not question the merit of the
bill, Karim said it was not a good practice to bypass
Parliamentary procedure and bring an ordinance. Every bill
should be debated in Parliament.
The Banning of Unregulated Deposit Scheme Bill, 2019 has
already been passed in the Lok Sabha.
Later, Minister of State for Finance Anurag Thakur moved
the bill for discussion in the Upper House and members from
various parties welcomed it and offered suggestions as well.
Participating in the debate, Suresh Prabhu (BJP) said it
is a comprehensive bill which is a necessity for the economy
as this will help mobilise savings in regulated environment.
Prabhu, however, suggested the Finance Minister look at
Clause 12 in Chapter 5 of the bill "very seriously" to avoid
dichotomy in view of amendments being brought to section 53 of
the IBC law.
Noting that a big challenge before the country was to look
at ways to mobilise savings, the BJP leader said, "China has
50 per cent saving rate in a USD 12.4 trillion economy. It has
USD 6.2 trillion savings that could be brought back into
investment. We have to increase our savings rate."
Savings can be improved if there are intermediaries like
NBFCs. But intermediaries need to be regulated. And also,
there should be a fine trade off between those who mobilise
deposit and protect the interest of depositors, he added.
AITC member Derek O Brien supported the bill, saying this
is the first bill brought for passage in the House after being
scrutinised by a parliamentary panel.
"None of 14 bills went through parliamentary scrutiny,"
he said.
Brien said it is a water-tight bill that aims to curb
fraudulent practices in ponzi schemes and chit funds as he
mentioned fraud cases like Pearl Chit Fund of Rs 49,000 crore
that affected 5,500 crore depositors and Gujarat's Oscar Chit
Fund that had deposit from 1.2 lakh people.
T Subbarami Reddy (Cong) supported the bill stressing
that the poor should be protected from unregulated deposit
schemes and norms should be made more stringent.
Currently, the Non-Banking Finance Companies (NBFCs) are
in a bad shape because of 2-3 unscrupulous companies and the
government should take steps to address the problems, he said.
Ramnath Thakur (JD-U), Vishambhar Prasad Nishad (SP) and
Prashanta Nanda (BJD) also supported the bill.
Nanda supported the bill, saying such a comprehensive law
is the need of the hour. He said it could hit real estate
developers who are getting money from such unregulated
schemes.
Banda Prakash (TRS) said there is a network of people
taking deposits using commission agents by offering high
interest rates and such funds are invested in real estate.
He lauded the Finance Minister for bringing this bill
that will help safeguard interests of people, especially the
poor, as there is no law to regulate such ponzi schemes.
He called for a regulatory mechanism and collection of
data by the Finance Ministry and states on how much money is
being taken through such deposit schemes. He said there is no
authentic study to measure how much poor people are investing
in these schemes.
K Soma Prasad (CPI-M) said it is high time such a law be
brought that could protect investors and put an end to such
schemes. He said the law could help tackle illicit deposit
companies and regulate them. The CPI-M member noted that most
of the time the poor are being cheated through such schemes.
He, however, expressed apprehensions that the law is
harsh and could provide harsh treatment to people in villages.
"There is ambiguity in the law and there must be clarity
for acceptance of loans for personal exigencies," he said,
adding the government should ensure maximum publicity to the
law.
Manoj Kumar Jha (RJD) supported the bill but had a word
of caution, saying bureaucracy should not be given so much
power that might create a state within a state, that might
create problems later. He called for action on such deposits
at the beginning itself.
P Wilson (DMK) said Tamil Nadu already has a law to
protect interests of depositors.
He also called for steps to ensure the supremacy of the
legislature and reclaim the space, since the judiciary and the
executive were transgressing. He also called for Bharat Ratan
to DMK leader Karunanidhi. PTI LUX SKC
DV
DV
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How Paytm QR Codes revolutionised digital payments in India

The first Indian company to integrate payments into QR and take it to the level of neighborhood stores Paytm had hired 10,000 agents during demonetisation to expand its merchant network and strengthen its team to take more users on board.

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